Recent research published by The Century Foundation highlights a troubling increase in student loan delinquency rates in the United States. Nearly 25% of student loan borrowers are reported to be delinquent on their payments, a significant rise from approximately 9% in 2019. The study utilized data from the University of California Consumer Credit Panel, which represents a 2% sample of U.S. adults with credit histories.
The report attributes this increase in delinquencies to policies enacted during the second term of the Trump administration. Specifically, the findings suggest that changes made by the administration have limited access to support programs for borrowers, thereby exacerbating financial challenges. In the first three quarters of 2025 alone, about 7.9 million borrowers were identified as entering delinquency.
The issue is particularly pronounced among certain demographics and regions. The analysis found that Black borrowers are disproportionately affected, with over 48% reported as delinquent, compared to 20% of white borrowers. States such as Louisiana and Mississippi exhibit the highest delinquency rates, nearing 40%.
Experts from the Biden administration have countered that these delinquency rates were previously masked by temporary relief measures during the COVID-19 pandemic. They argue that the current spike is partly due to the expiration of these measures and the resulting return to normal collection practices.
Additionally, ongoing legislative changes are poised to further complicate repayment for borrowers. The recent overhaul, known as the One Big Beautiful Bill Act, could significantly increase monthly payments for many households. As the situation evolves, over 600,000 applications for affordable repayment plans remain pending, indicating continued challenges for borrowers navigating the student loan landscape.